Wednesday, May 6, 2009

CapitaCommercial Trust - 1Q09 Outperforming peers

CCT reported DPU of 3.24 cents, an increase of 25.1% yoy and representing annualised yield of 15.9%. The results is better than our DPU forecast of 3.04 cents. Gross revenue increased 36.9% yoy to S$97.5m due to acquisition of One George Street and Wilkie Edge and positive rental reversion for its office properties.

CCT has been renewing leases way ahead of expiry. It has signed new or renewed leases for 335,800sf of space with rentals, on a weighted average basis, increasing 49% compared to previously signed rents. 89% of forecast rental income for 2009 is lock-in under committed leases.

Current average monthly office rent is low at S$7.73psf, slightly higher than S$7.44psf in 4Q08. Committed occupancy on a portfolio basis is 97.7% in Apr 09, compared to 96.2% at Dec 08. The improvement could have came from newly completed Wilkie Edge at Selegie Road.

The average lease term to expiry for its top-10 tenants is 6.4 years. They accounts for about 50% of gross rental income and provide some defensive shelter.

CCT has obtained a commitment letter from a bank for a three-year secured term loan of up to S$160m to refinance the remaining outstanding debt maturing this year. This is secured against HSBC Building with all-in margin for the term loan at 3.0%.

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1 comment:

HDB rent said...

Very useful post on capita commercial trust.Rentals will rise once stock market improves.